Miller Group has reported double-digit revenue and profit growth for the 2013 year ending December.

The Edinburgh-based group said revenues rose almost 32 per cent last year to £817.3 million (2012: ££619.9 million) and pre-tax profits rose nearly 58 per cent to £10.4 million (2012; £6.6 million).

Group net debt at the year end was down more than 16 per cent on the previous year to £168.8 million (2012: £202 million).

The group has reported operating losses of £4.6 million at its construction division, where revenues rose 57.6 per cent to £408.7million, which it said was down to it having procured some contracts “competitively on the basis of price”.

Miller notes: “As we have made clear, we no longer tender for projects on this basis unless they are projects with clients with whom we have ongoing, long-term strategic relationships and are at commercially viable margins”.

Miller Construction had a “record” £1.8 billion forward order book at the year end, largely on “lower risk framework agreements, services, PPP (Public/Private Partnership) and strategic client work”.

In housebuilding, Miller Group said completions were up 21 per cent last year to 2,053 units (2012: 1,831 units) and private reservation rates rose 22.5 per cent, with “significant improvements” recorded in the second half.

The group said; “The UK housing market has improved significantly over the last year, assisted by the introduction of Help to Buy and the increasing availability of higher loan-to-value mortgages.”

Turnover from the housebuilding division was up 24 per cent to £330 million, with average house selling prices having increased more than six per cent from £170,000 in 2012 to £181,000 last year.

Miller said it expects average house prices “should increase further, driven by “the increased focus of our land investment on family housing in quality locations”.

Operating profits form the housing division was up 57 per cent to £22.8 million (2012: £14.5 million) which Miller said was driven by “an increasing proportion of completions from newly acquired sites”.

Miller said it increased land buying to £92 million last year (2012: £56 million), which saw its owned and consented landbank grow by eight per cent to 8,731 plots, which it said equates to five years of supply.

The group has also recorded “record” progress on its strategic land interests, with planning consent granted on 2,538 plots, taking the strategic landbank increased to 17,000 plots.

The group said: “As we trade through our legacy land and replace these resources with new, and higher margin, sites, we expect to see performance continue to improve”.

The group said the hike in profits at Miller Developments was generated by “higher margin land trading transactions than in 2012”.

Miller notes: “We acquired 100 acres of land adjacent to Aberdeen airport and are in advanced discussions with landowners at both Omega and Arena Central in Birmingham to bring forward further phases of development.

“These developments will provide the backbone to future profitable trading for the business. We have a total development pipeline of 12 million sq ft.”

In mining, Miller said 2013 was “another solid year” with the division having performed “ahead of expectations despite particularly adverse weather conditions both at the start and end of the year”.

However, operating profits in mining were down 51 per cent to £4.5 million (2012: £9.2 million) which the group said was “driven by the return on an historic fixed price contract that accounts for circa 60% of our output”.

The group said profits from mining in 2012 had benefited from coal prices being locked in when the market rate was high.

Miller said it secured planning permission for a new wash plant at Ffos-y-fran in southern Wales which the group said would significantly increase capacity to supply metallurgical coal for the steel market both in the UK and overseas.

Net debt at the year-end was £168.8 million, down from £202 million at the beginning of the year, and down from £706.6 million reported at the 2012 year-end.

Miller Group restructured its bank debts in 2012, reducing net debt from £706.6 million to £217 million as of June 30, 2012.

The group converted £216.6 million of its debt to ordinary shares – debt for equity – and a further £48.9 million of group debt was waived, which was transferred to “distributable reserves”. In addition, the group's £238.5 million lending facility was extended to February 2017.

Miller Group also agreed a new £160 million funding package which saw it relinquish a 50 per cent stake to its financier GSO Partners – the credit arm of private equity giant Blackstone Group – along with Noble Grossart and the Royal Bank of Scotland, which increased its stake to 23 per cent.

Commenting on the 2013 financial results, Miller Group chief executive, Keith Miller, said: "All our businesses are now well positioned to take full advantage of improving market conditions.